Austerity is CONTRACTIONARY! And, as Atrios says, “Contractionary policy is contractionary.” That means that it cuts economic growth. Economics 101: austerity cuts economic growth! I mean, DUH! You cut back on the things that underpin an economy and the economy shrinks.

Seriously, is there any example, ever, anywhere of austerity causing an economy to grow? (Hint: NO!)

But?

Hey here is an idea. Instead of creating money and giving it to banks and enriching bankers, as the Fed is doing, how about creating money and using it to pay for repairing the country’s infrastructure which means a lot of people get hired!

About Dave Johnson

Dave has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.